Reynolds American profit rises 6.7 pct on higher pricing

Tue Jul 29, 2014 7:57am EDT

The headquarters of Reynolds American is seen next to the old R.J. Reynolds Tobacco smoke stacks from a previous manufacturing plant in downtown Winston-Salem, North Carolina May 23, 2014.  REUTERS/Chris Keane

The headquarters of Reynolds American is seen next to the old R.J. Reynolds Tobacco smoke stacks from a previous manufacturing plant in downtown Winston-Salem, North Carolina May 23, 2014.

Credit: Reuters/Chris Keane

(Reuters) - Tobacco major Reynolds American Inc's (RAI.N) quarterly profit rose 6.7 percent as price increases helped to make up for a drop in cigarette volumes.

The company's net income rose to $492 million, or 92 cents per share, in the second quarter ended June 30, from $461 million, or 84 cents per share, a year earlier.

Net sales fell 0.7 percent to $2.16 billion.

Reynolds American, which has agreed to buy smaller rival Lorillard Inc (LO.N) in a $25 billion deal, also raised the bottom end of its full-year adjusted earnings forecast range to $3.35-$3.45 per share from $3.30-$3.45.

(This story has been refiled to change the dateline of the story to July 29 from July 28)

(Reporting by Shailaja Sharma in Bangalore; Editing by Saumyadeb Chakrabarty)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.